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sustainable energy use. Half of the branches in the Bendigo network had been operating
for less than two years and the bank lending approvals had surged by 76 per cent. Russell
Jenkins, Bendigo Bank’s Senior Manager (Remote Banking), said in 2001, ‘Having secured
their local bank, these communities are now seeing flow­on benefits beginning to emerge.
Local shopkeepers’ takings are up and confidence has returned.’ 29 Unfortunately, however,
New Zealand’s different regulatory system would have to change before a similar model
could be applied in this country.
Community Banking in New Zealand
Given the disillusionment among New Zealanders with bank closures, loss of personal
banking, high fees and the flow of profits to offshore owners, there has been a surge in
interest in locally owned financial institutions. Before I go on to look at some of these, I
will focus briefly on the more recent history of banking in New Zealand.
Back in 1986, when the government deregulated banking, the majority of trustee
savings banks around the country merged to form the Trust Bank Group, which became
Trust Bank New Zealand in 1988. TSB Bank, ASB and Westland Bank decided to stick to
their original purpose of serving their small customers, and so opted out of the merger.
In 1989, the Commonwealth Bank of Australia bought a 75 per cent stake in ASB
Bank, then in 1994 ASB Bank took over Westland Bank in order to save it from going
under. This meant that in 1996, when the Australian­owned Westpac bought out Trust
Bank New Zealand, TSB Bank was the only 100 per cent New Zealand­owned bank. In
2000 ASB Bank lost its remaining 25 per cent New Zealand share when the
Commonwealth Bank took over total ownership.
The effect of this loss of local control over banking has been yet more branch
closures, rising EFTPOS and ATM fees, and growing dissatisfaction among customers,
especially in rural communities.